My predictions for 2018 for the Spanish real estate sector.

The recovery of the real estate sector, one of the most punished during the crisis, will receive a new boost in 2018 with the rise in the price of housing and
the increase in purchases of new work currently obtaining building licences, according to the experts.

According to EFE agency the average price of housing will rise this year between 5% and 10% compared to last year 2017 and the number of purchase transactions
will reach half a million, higher than the estimate for the end of 2017, which was approximately 470,000 and this agency is not the only one in making such predictions.

Real estates in Spain.

A key year begins for the housing sector; After a relative good 2017, in which the recovery trend was consolidated, 2018 is called to be the year for the
normalization of the residential market. The consensus of the panel of experts which I have investigated, predict a price increase slightly higher than 5%, with increases even higher than 10% in
large cities and in the most consolidated and tourist areas of the coast. This revaluation will take place in a context of great dynamism of the market, in which purchases will grow above 10%,
surpassing the threshold of 550,000 dwellings, thanks to the fact that new housing will regain prominence, after a decade of lethargy. The rental price will also continue to rise, due to the
impact of investors who buy flats to make them profitable in the rental market.

Homes for sale.

The Spanish real estate portal Pisos.com, bets on and increase of 6% however the other almighty Spanish portal Fotocasa, points out, that prices are still 40%
below those that were reached during the 2007 real estate boom.

Nevertheless, both stressed that the rise in prices is uneven in the different cities and autonomous communities.

They both coincide that Madrid, Barcelona and the Spanish islands are taking the lead and are pulling prices for buying and selling together with the East
Spanish Coast of Alicante Valencia and Murcia.

Flats for sale in Spain. A long agony

All the main real estate agencies and portals consulted seem to agree that in 2018 the half a million purchase will be exceeded, with a greater prominence of
new construction housing, since there is a deficit in large cities.

However, second-hand housing will maintain a very relevant role, with a higher price increase.

Another relevant figure for those of us involved in the construction of new homes is that the prognostication for 2018 seem that will reach the 100,000 mark,
which would be an improvement over the 80,000 achieved for the whole of 2017 but would be far from the "cruise speed" of the sector, encrypted around 150,000.

The consultancy Hill International, has underlined that, after the flotation of large promoters in 2017 like Aedas or Neinor, a significant increase in the
volume of homes built is expected.

Rent or sale, 2018 is the year.

However, they also pointed out that the lack of land with planning permission is one of the main factors that may limit the progress of the plans for this
year.

Fotocasa has indicated that the growth of the sector will depend, among other things, on the economic, financial and political context, with which the
situation in Catalonia will be fundamental, since this community has been one of the main drivers of the reactivation of the sector in 2017.

Experts agree that Spain is a country of owners and the purchase is always preferred to rent, although society is experiencing a change of mentality and more
and more people are willing to rent.

Figures from the Idealista portal, show that rental price in Spain rose 18.4% in 2017 while in Barcelona it fell 2.4% after four years of increases.

They also pointed out that the upward trend in rent is a consequence of the fact that all small and medium investors in the last three years have decided to
move their savings from their bank accounts to the real estate business due to the ridicule interests paid by banks on saving accounts

From the number of new clients that are coming to our studio enquiring for new projects in 2017 and the avalanche we have in January 2018 I do predict that
2018 will be enhanced in business and thus, 2018 will become the fifth consecutive year of improvement in the residential real estate segment.